Friday, January 24, 2014

When will government implement the second pay revision committee’s recommendation for CPSE employees?

WITH a new officer at the helm of department of public enterprises (DPE), and Lok Sabha elections round the corner, will the government implement the much-awaited pay revision for the officers of the Central PSEs which is due since 2007? Since the government often bank upon the profit making CPSEs for cash, will it pay back to tens of thousands of employees of the CPSEs before the elections?  
In a bid to put pressure on the government to expedite the process before the electoral model code of conduct comes into force, the representatives of the officers association of Maharatna PSUs under the banner of Confederation of Maharatna Company Officers (COMCO) met Kusumjit Siddhu, secretary, department of public enterprises recently. They requested her to...
issue directions to the board members of the Maharatna companies and respective ministries to initiate the process of pay revision for officers of PSUs. Officers of India’s leading Maharatna companies have come together to form a Confederation, which includes representatives from the officers associations of Bharat Heavy Electricals Limited (BHEL), Coal India Limited, GAIL (India) Limited, Indian Oil Corporation (IOC), NTPC, Oil & Natural Gas Corporation Limited (ONGC) and Steel Authority of India Limited (SAIL).
The last pay revision had come into effect in January 2007.
The Pay Revision Committee, under the chairmanship of justice (retd), MJ Rao, has opined that ” the responsibility of future revision should be given to the Board of Directors of a company subject to the approval of the concerned Ministry in discharge of its role as shareholders”. Other members of the committee include Nitish Sengupta, member; PC Parakh, member; RSSLN Bhaskarudu, member
R Bandyopadhyay, ex-officio member.
They added that the provisions of increase in DA and annual increment of three percent have failed to counter the escalation in expenditure for basic needs. The Confederation has requested the Government to provide immediate interim relief by merging 50 percent of DA with Basic Pay w.e.f. January, 2012 & ad-hoc relief towards the same be released immediately.
Earlier, the representatives of Officers’ Association of Maharatna PSUs, under the banner of Confederation of Maharatna Company Officers’ (COMCO) met CS Verma, chairman of Standing Committee of Public Enterprises (SCOPE), who is also the chairman of Steel Authority of India Limited, at Ispat Bhawan with an objective to create positive work environment in PSUs.
The committee was guided by several major considerations like to attract suitable managerial talent to the public sector system as well as to prevent the on going exodus of managerial talent. It was observed that in the last few years the public sector system failed to attract any IIT or IIM graduate in any of the public sector enterprises and visits to their campuses for placement very often yielded no result.
The phenomenal hike in the salaries in the private sector after the 1970s, the advent in India of large number of multinationals in1980s and 1990s and the sky high salary level that they introduced for managers had changed the perspective completely, the committee said.
The committee said that public sector salary levels appeared to be far less attractive. This also explains the on going exodus from the public sector system especially at the middle level and higher level management. Incidentally, this is also the phenomenon facing the private sector itself as here also the globalization as a factor is playing havoc and many of the managers from private sector companies are often being drawn to positions in other parts of the world under MNC.
The committee added that something drastic needs to be done to prevent this on going exodus and to attract right managerial talent to the public sector system. It is, therefore, absolutely necessary that the remuneration levels are cut off from the umbilical chord that traditionally ties public sector salary level with government salary level.
The committee has classified CPSEs into five categories and the classification is based on the turnover, size of manpower and geographical spread of the CPSE. There will be five sets of pay scales based on categorization of CPSEs. There will be two components of pay i.e. Basic Pay and Risk Pay. Risk Pay is in addition to Basic Pay which depends on the categorization, profitability of the Company and the level of the executive. Fixed Pay for CMDs and Directors has been recommended. CMDs Basic Pay ranges from Rs 55,000 to Rs 100,000 depending upon the category. Directors basic pay ranges from Rs. 50,000 to 80,000 depending upon the category.
Basic Pay of below board level executives ranges from a minimum of Rs 11,500 to Rs 70,000 at maximum level. Risk Pay will be in addition to the Basic Pay. Risk Pay ranges from Rs. 1100 to Rs. 25,000 pm.
CPSEs will follow IDA. HRA will be at the rates of 30 percent, 20 percent and 10 percent of the Basic Pay depending upon the classification of the cities/towns based on population.
A new scale Rs.65,000-75,000 at below Board level has also been suggested.
According to the recommendation, there is no change in retirement age and CCA has been dispensed with. Retirement benefits to be 30 percent of the Basic Pay., which includes CPF, Pension, Gratuity and post retirement medical benefits.
Revision of the scales of pay and other benefits of non-unionized supervisors to be decided by the Board of Directors of concerned CPSE.
In order to implement PSU wage revision, DPE has been conducting wage negotiations with union representatives.  Now the Government has come up with a policy for the 7th round (2nd part) of Wage Negotiations for unionized workers in Central Public Sector Enterprises with effect from January 1, 2012.
For the first time government appointed a pay revision committee for the revision of pay scales of executives of CPSEs, headed by justice S Mohan, retired judge, Supreme Court of India, in 1997 and it submitted its report in 1999.

7 comments:

  1. hi,all of u,we are wishing all psu employees/officers,we are waiting wage revision for more than 22 years.since 1992.our last wage revision is 1987.you are worried 2007 pay scale employees no one consider us,we are also public sector emploees in india.(sick psu)The govt have no many to give sick psu employees.just 12000+ employees.but the govt have money to 7th pay commision and 2012 .

    ReplyDelete
  2. how PSU's like BSNL MTNL will be working where there is competition from private sector? other PSU's dont have that much competition from private sector. Though these PSU's are loss making these are badly needed for country's safety & security.

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  3. Govt has got no long term plans for safety n security of nation. It just want to fill its pockets by mending rules in favour of privates. It will create a foggy situation in all the PSUs regarding their salary so as to morally break officers n employees resulting in decrease in their productivity. They are creating platform for privates to work without any competition from already existing PSUs

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  4. I totally agree with & really sympathize with the plight of employees in sick PSUs. They are really suffering since ages because of no fault of their's. the decisions made by corrupt ministers & bureaucrats has led to the erosion in the productivity & profitability of these PSUs. At least now Govt should wake-up and address the sufferings of the people employed in these PSUs.

    ReplyDelete
    Replies
    1. s sir what did u say thats 100% correct.

      Delete
    2. 09-11-2014

      Kindly note that some of the
      public Sectors like HMT have not paid the Earned leave
      Encashment Money to the retiring Employees under the
      pretext that it would be paid when Funds are
      available, but earned leave en-cashment money to
      existing employees is being Paid without a stop every
      year. Why is Pay revision that also of 1997 scale ( not
      2007) , implemented only to the existing employees
      on rolls as on 28th February 2014 and the retirees are
      not even being considered Why? are the retired
      employees not a party of the society. People retired
      about 5-6 years back have not received
      El.encashment also till date. Is the Social security act not
      applicable to the retired employees?
      Where is social security, Kindly also bear in mind
      that the prices of commodities and medical expenses is
      not different to employees and retired employees of
      loss making PSU's. The Industrial Pension is also very
      meager and does not have any DA component added to
      take care of inflation. I feel that Depriving the
      benefits of pay commission recommendation to loss
      making PSU employees is not Justified, also depriving
      the retired employees whenever the pay revision is
      implemented is not correct. It looks that the
      Government is Punishing the employees/Retirees for no
      mistake of theirs. Kindly note that Retired employees
      Come under the Senior Citizen category.
      When will the government give social security to
      these retirees who are helpless.
      These people cannot fight a legal battle also as they
      cannot afford.
      Letters to the General Manager/Managing
      Director/Joint General Manager( Finance) have given no
      results.
      Hope this letter to you may open the eyes of the
      Government and this new Government may do some
      Justice.
      Is the attitude of the Government and the Company’s management’s different with regard to Retired employees?

      M.R.Vishwanath
      Retd.Dy.General Manager
      ( Retired in 2010)
      HMT. Machiine Tools Ltd,
      Bangalore
      Mobile -91 09480219756

      Delete
  5. 09-11-2014
    To the Editor,
    Kindly note that some of the
    public Sectors like HMT have not paid the Earned leave
    Encashment Money to the retiring Employees under the
    pretext that it would be paid when Funds are
    available, but earned leave en-cashment money to
    existing employees is being Paid without a stop every
    year. Why is Pay revision that also of 1997 scale ( not
    2007) , implemented only to the existing employees
    on rolls as on 28th February 2014 and the retirees are
    not even being considered Why? are the retired
    employees not a party of the society. People retired
    about 5-6 years back have not received
    El.encashment also till date. Is the Social security act not
    applicable to the retired employees?
    Where is social security, Kindly also bear in mind
    that the prices of commodities and medical expenses is
    not different to employees and retired employees of
    loss making PSU's. The Industrial Pension is also very
    meager and does not have any DA component added to
    take care of inflation. I feel that Depriving the
    benefits of pay commission recommendation to loss
    making PSU employees is not Justified, also depriving
    the retired employees whenever the pay revision is
    implemented is not correct. It looks that the
    Government is Punishing the employees/Retirees for no
    mistake of theirs. Kindly note that Retired employees
    Come under the Senior Citizen category.
    When will the government give social security to
    these retirees who are helpless.
    These people cannot fight a legal battle also as they
    cannot afford.
    Letters to the General Manager/Managing
    Director/Joint General Manager( Finance) have given no
    results.
    Hope this letter to you may open the eyes of the
    Government and this new Government may do some
    Justice.
    Is the attitude of the Government and the Company’s management’s different with regard to Retired employees?

    M.R.Vishwanath
    Retd.Dy.General Manager
    ( Retired in 2010)
    HMT. Machiine Tools Ltd,
    Bangalore
    Mobile -91 09480219756

    ReplyDelete